Iceland’s Financial Supervisory Authority (FSA) has completed its investigation of financial fraud that led to the country’s 2008 collapse. The investigations involved 205 cases of malpractice and have been ongoing for more than four years, Bloomberg reports.
The FSA referred 103 of the total cases to prosecutors, while fines were imposed in 4 cases, and the remaining 98 were dropped.
In addition to wrapping up investigations the FSA also issued a warning against removing the currency restrictions that have been in place since the collapse. “If we’re thinking about removing the capital controls, both the banks and the economy as a whole, and the króna’s exchange rate are in questions,” said Unnur Gunnarsdóttis, FSA chief executive.
The Central Bank of Iceland imposed strict capital controls following the banking collapse in 2008 in a bid to maintain some semblance of stability for the króna. The currency had plummeted by 80% against the euro at that time, and has since been held steady by restricting the withdrawal of foreign currency from the country. These capital controls will begin to be lifted this year.
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